Financial Modeling in the Oil & Gas Industry

INTRODUCTION
This Financial Modeling in the Oil & Gas Industry training course is designed to enhance participants understanding of advanced use of Excel. The global competitive environment affecting firms across all sectors including Oil & Gas companies. The ability of using Excel to its fullest is the minimum requirement to remain competitive in the current environment. This training course is designed to provide in-depth knowledge of using Excel in financial modeling. Upon completion the delegates will have the skills to use Excel efficiently, understanding how to deal with several important issues related to financial modeling, performance measurements and setting targets using sophisticated techniques. The delegates will have the knowledge to explain and propose various methods relevant in enhancing company performance.

OBJECTIVES
• Improve the quality of the quantitative analysis of corporate presentations
• Apply financial modeling in the oil and gas industry
• Effectively assess the appropriate discount rate
• Use various models of investment appraisal techniques
• Use business statistics to enhance operations and target setting for the organization

COURSE OUTLINE
DAY 1
• Introduction to the Excel Environment with Oil and Gas
• A Quick-start Tutorial for Excel
• Describing Data Sets Using Statistics
• Representing Data sets Graphically
• Understanding the Concept of Normal Distribution and practical application
• Trend Analysis Using Excel
• Time Series Analysis
DAY 2
• Statistical Analysis (Applied to the Oil and Gas Industry) Using Excel
• Use of Excel Functions for Statistical Analysis
• Descriptive Statistics and their applications:
• Mean
• Median
• Standard Deviation
• Kurtosis
• Use of Scatter Diagrams, Frequency and Histogram Distribution
• Regression Techniques to Calculate the Cost of Equity Financing
• Analysis of Equity Returns of Oil and Gas Industry and Companies
DAY 3
• Oil Product Spreads
• Examining the Relationship between Energy Products
• Differences between Data Sets and their importance.
• Correlation Analysis
• Confidence Intervals
• Application of Analysis of Variance (ANOVA)
DAY 4
• Investment Appraisal Using Excel
• Investment Appraisal using NPV, IRR, and Payback as Applied to the Oil and Gas Industry
• Use of Excel Functions for Investment Appraisal: IRR, PV and NPV
• Modified Internal Rate of Return (MIRR)
• Use of Scenario Analysis and Stress Testing
• Predicting Financial Distress
DAY 5
• Financial Analysis in the Up and Down Stream Oil and Gas Industry
• Introduction to Financial Statements
• Ratio Analysis Applied to the Oil and Gas Industry
• Ratios as a System – Pyramids of Ratios
• Financial Modeling
• Cash Flow Forecasts Using Excel